Reference no: EM132806375

Problem 1: Generally accepted accounting principles require that the inventory of a company be reported at:

1) Net realizable value

2) Historical cost

3) Lower of cost and net realizable value

4) Replacement cost

5) Purchase price

Problem 2: Internal control procedures for cash receipts require

1) Separation of custody of cash receipts from their recordkeeping

2) In-store cash sales be recorded on a cash register at the time of each sale

3) All cheques to be numbered in sequence

4) Separation of custody of cash receipts from its recordkeeping and in-store cash sales be recorded on a cash register at the time of each sale

5) All of the above